Property asking prices have fallen in June for the first time since 2009 as election uncertainty plagues the housing market, data from a leading property website suggested today.

The price tag put on of newly-listed homes dropped for this first time this year, according to Rightmove, by 0.4 per cent as sellers lost some confidence in the face of political and economic uncertainty.

The slip slowed the annual rate of price increase to 1.8 per cent, the lowest since April 2013.

Yet while that chimes with some other major house price reports, it stands in contrast to the Office of National Statistics index last week that showed house price inflation picking up. So what is happening with house prices? We take a look.

House prices have fallen in June for the fist time since 2009 after the indecisive election result

What's the latest on asking prices?

Rightmove's index measures the asking price of newly-listed homes on its website. That means it is more of an indicator of sentiment than the actual price of a home. Sellers can list with any price tag, but that doesn't mean buyers will pay it.

As a barometer the Rightmove index has proved useful in recent years, however. Today's figures showed the average asking price down £1,172 in the four weeks to mid-June, a 0.4 per cent dip .

But it's not all doom and gloom for the housing industry as Rightmove claimed that agreed sales soared - by 11 per cent in the North and 3 per cent in the South.

The number agreed at this time of year is the second highest for ten years and seven per cent higher than in June last year, the data from Rightmove showed.

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Properties are selling faster too, with the average sale time dropping from 60 to 59 days.

And more first-time buyers are getting their feet on the property ladder as the desire for home-ownership continues, aided by low borrowing costs.

It has seen newly-listed prices surge 3.5 per cent compared with May and 5.5 per cent compared with June last year.

The national average price drop was due to falls of 2.4 per cent in London, 0.9 per cent in the South East and 0.8 per cent in the West Midlands while other regions saw prices rise

Why have asking prices dipped?

Rightmove director Miles Shipside blamed the slump on uncertainty and falling buyer confidence after the Conservatives lost their Parliamentary majority on 8 June.

He said: 'It now seems that we will have continuing political uncertainty, which the housing market traditionally dislikes, and with the first fall in June prices for eight years there is no doubt that the lack of stability is a factor.

'The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events.

'However, demand is still high and markets in some parts of the country seem to be getting used to coping with instability and are still strong.

'The high levels of sales being agreed show that the underlying fundamentals are largely unchanged with high first-time buyer demand which drives movement higher up the ladder, all aided by the cheap cost of borrowing.'

House prices dropped for this first time this year by 0.4 per cent as buyers refused to pay top dollar in the uncertain economic climate

But the ONS say house price inflation picked up

In a set of results that contrasted with other surveys, the latest ONS report said that annual property price inflation has hit its highest level since last October.

The average house price increased 5.6 per cent in the year to April 2017 - higher than the 4.5 per cent rate recorded the previous month - to reach £220,100. That is £3,500 more than March and £12,000 higher than this time last year.

The index is based on Land Registry sales data and lags others by a month. It said that regionally the East is seeing the biggest annual inflation, at 8.1 per cent, followed by the South West at 6.8 per cent.

The lowest annual growth was in the North East, where prices increased by 0.6 per cent over the year, followed by the North West at 4.1 per cent. Nationally, Scotland saw the biggest percentage increase in price, rising 6.8 per cent annually to reach £146,000 according to the ONS.

In England, prices are up 5.7 per cent to £237,000, Northern Ireland by 4.3 per cent to reach £124,000 and Wales by 4.2 per cent to reach £148,000.

What about the other house price reports?

Property inflation slipped back to 3.3 per cent in May, the smallest annual growth in house prices for four years, the latest monthly index from Halifax reported.

At £220,706 in May, the value of an average British home was up almost £1,000 on April, but is nearly £1,500 down on the peak recorded in December 2016.

The 3.3 per cent annual increase is around a third of the surging growth seen at the start of last year, before the EU referendum - although the average home remains £7,400 more expensive than it was a year ago.

Nationwide also said that there were further signs that the housing market is losing momentum, as it was revealed house prices fell for the third consecutive month in May.

The price of the average home in the UK fell 0.2 per cent between April and May to £208,711, a smaller drop from the previous month when prices fell by 0.4 per cent, according to the building society's price index.

Average prices still increased by just over £4,300 compared to a year ago, but the pace of growth eased to 2.1 per cent from 2.6 per cent, the slowest in almost four years.

Annual inflation: House price inflation darted higher in April to record its largest increase since October 2016

What is holding back house prices?

A split in the market is evident in that the hotspots of recent years in London and the South East have slowed, while cooler areas such as the North are seeing activity and prices warm up.

One of the key factors is that house prices in London and the South East are now so high. The average London property now costs £483,000, according to the ONS, while the average South East home is £315,000.

The continuing rise in house prices has stretched affordability, with property values now at the same level compared to wages as they were at the peak of the 2000s boom.

Martin Ellis, a housing economist at Halifax, said: 'The fact the supply of new homes and existing properties available for sale remains low combined with historically low mortgage rates and a high employment rate, is likely to support house price levels over the coming months.'

Brian Murphy, head of lending for Mortgage Advice Bureau, said the news that house prices were falling on Rightmove's index is unlikely to surprise those in the industry.

He said: 'It's likely to be a reflection of vendors being more realistic about asking prices, and listening to advice from estate agents, many of whom have experienced similar market conditions previously, and therefore know the drill; don't be ambitious about what's achievable in the current climate unless you want a property to sit on the books for months.'

House prices have fallen in June for the fist time since 2009 after the indecisive election result

Properties are selling faster with the average sale time dropping from 60 to 59 days

It is believed that buy-to-let landlords are buying fewer homes after cuts to mortgage interest tax relief started in April.

Mr Murphy added: 'First-time buyers being the fastest growing group isn't unexpected either, as we're now beginning to see fewer investors active in the market due to the recent taxation changes which came into force as of April.

'With fewer landlords adding to their portfolios, First-Time-Buyers in many areas of the UK are now potentially facing less competition for the same sorts of properties, which is positive news, as those taking their first step on the property ladder underpin the rest of the market.'

Kevin Shaw of estate agency Leaders said: 'May was a bumper month for Leaders in terms of sales, despite the general election. Since 8 June, even with the continuing political uncertainty, it's very much business as usual for the property market.

'Whilst some people may be adopting a wait and see approach, many more are wanting - or needing - to press on with their property transactions.

'We have, however, started to see a slight hardening of attitude from buyers so sellers need to have realistic expectations and be prepared to be flexible in negotiations.'

Eastern promise: House prices in the East are up 8.1 per cent annually, the latest official data from the ONS shows

One estate agent said: 'We have started to see a slight hardening of attitude from buyers'

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